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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN serves as a business's tax identification number, akin to a social security number for individuals. It's important to properly close your EIN to avoid future filings, payments, or taxes, even after the business is no longer operational. This action also helps to prevent potential fraud that could occur if accounts remain open. Ensuring the closure of your EIN is a crucial step in the business shutdown process.
